Wolfpack Company is a merchandising company that is preparing a budget for the month of July It has provided the following information Wolfpack Company Balance Sheet June 30 Assets Cash $ 91,400 Accounts receivable 67,200 Inventory 31,000 Buildings and equipment, net of depreciation 165,000 Total assets $ 354,600 Liabilities and Stockholders Equity Accounts payable $ 62,600 Common stock 100,000 Retained earnings 192,000 Total liabilities and stockholders equity $ 354,600 Budgeting Assumptions All sales are on account Thirty percent of the credit sales are collected in the month of sale and the remaining 70 are collected in the month subsequent to the sale The accounts receivable at June 30 will be collected in July All merchandise purchases are on account Twenty percent of merchandise inventory purchases are paid in the month of the purchase and the remaining 80 is paid in the month after the purchase The accounts payable at June 30 will be paid in July The budgeted inventory balance at July 31 is $19,800 Depreciation expense is $3,300 per month All other selling and administrative expenses are paid in full in the month the expense is incurred The companys cash budget for July shows expected cash collections of $96,300, expected cash disbursements for merchandise purchases of $72,000, and cash paid for selling and administrative expenses of $16,100 Required Requirement 1a Calculate the budgeted sales for month of July Budgeted sales for July Requirement 1b Calculate the budgeted merchandise purchases for month of July Budgeted merchandise purchases for July Requirement 1c Calculate the budgeted cost of goods sold for month of July Budgeted cost of goods sold for July Requirement 1d Calculate the budgeted net operating income for month of July Budgeted net operating income for July Requirement 2 Prepare a budgeted balance sheet as of July 31 Wolfpack Company Balance Sheet July 31 Assets Total assets Liabilities and Stockholders Equity Total liabilities and stockholders equity

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Posted on Sep 18, 2024

Wolfpack Company is a merchandising company that is preparing a budget for the month of July. It has provided the following information:

Wolfpack Company Balance Sheet June 30
Assets
Cash	$	91,400
Accounts receivable		67,200
Inventory		31,000
Buildings and equipment, net of depreciation		165,000
Total assets	$	354,600
Liabilities and Stockholders Equity
Accounts payable	$	62,600
Common stock		100,000
Retained earnings		192,000
Total liabilities and stockholders equity	$	354,600

Budgeting Assumptions:

All sales are on account. Thirty percent of the credit sales are collected in the month of sale and the remaining 70% are collected in the month subsequent to the sale. The accounts receivable at June 30 will be collected in July.
All merchandise purchases are on account. Twenty percent of merchandise inventory purchases are paid in the month of the purchase and the remaining 80% is paid in the month after the purchase. The accounts payable at June 30 will be paid in July.
The budgeted inventory balance at July 31 is $19,800.
Depreciation expense is $3,300 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred.
The companys cash budget for July shows expected cash collections of $96,300, expected cash disbursements for merchandise purchases of $72,000, and cash paid for selling and administrative expenses of $16,100.

Required:

Requirement 1a.

Calculate the budgeted sales for month of July.

Budgeted sales for July

Requirement 1b.

Calculate the budgeted merchandise purchases for month of July.

Budgeted merchandise purchases for July

Requirement 1c.

Calculate the budgeted cost of goods sold for month of July.

Budgeted cost of goods sold for July

Requirement 1d.

Calculate the budgeted net operating income for month of July.